What is an ADU?

An ADU is an Additional Dwelling Unit - this generally describes a separate living space on your property in addition to the home you already have. They can be built inside the house, onto the house, or off in the yard.

Depending on the size of your lot, an ADU is allowed in most urban residential neighbourhoods. Use the ADUSearch tool to see if your property can fit another unit.

Types of ADU

There are three types of ADUs:

  1. Type A: Interior Alteration (Built IN)
    These homes are built inside the existing building. An example would be a basement apartment, but they can also be on the main or upper floors.

  2. Type B: Addition (Built ON)
    These homes are built as an attached addition to an existing building.

  3. Type C: Accessory Building (Built OFF)
    These homes are completely separate from the existing house or main building on the property. They also go by “Backyard Homes” or “Laneway Houses”.

Steps to building an ADU How to create an ADU on your property

  1. Make sure your lot can fit an ADU - use the ADUSearch tool to check out your property!
  2. Figure out the type of ADU you want to build.
  3. Estimate how much your project will cost.
  4. Apply for grants and secure funding.
  5. Get Your Project Ready! Let's Build Thunder Bay!

These steps are outlined in greater detail in our How to Create an Additional Dwelling Unit on Your Property guide.

ADU Grants and Financial Incentives available

The Additional Dwelling Unit Grant is intended to encourage home or property owners to add legal additional units to a residential or mixed-use building that are safe and contribute to the limited supply of diverse rental housing. This can be within the building as an apartment, an addition to the building, or a backyard home on the property. There may be other grants and incentives available for your project.

Learn more and apply today!

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